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SAP does well in EMEA cloud

Submitted by lawrence on October 30, 2017

SAP's fast revenue growth in the cloud continued in the third quarter. New cloud bookings grew by 14% (19% at constant currencies) in the third quarter and reached €302m. IFRS cloud subscriptions and support revenue grew 22% year over year to €937m and non-IFRS cloud subscriptions and support revenue grew 22% year over year (27% at constant currencies) to €938m. IFRS and non-IFRS software revenue was €1.03bn, stable year over year (up 3% at constant currencies).

New cloud and software license order entry grew by 15% year over year in the third quarter. IFRS and non-IFRS cloud and software revenue was €4.66bn, an increase of 5% (8% at constant currencies). SAP's "predictable revenue", i.e. the total of cloud subscriptions & support revenue and software support revenue, was 65% of total revenue, up 1 percentage point year over year.

IFRS operating profit was up 19% to €1.3bn. Non-IFRS operating profit was stable at €1.64bn (up 4% at constant currencies).

SAP had a strong performance in the EMEA region with cloud and software revenue increasing 8% (IFRS) and 9% (non-IFRS constant currencies). Cloud subscriptions and support revenue grew by 42% (IFRS) and 46% (non-IFRS at constant currencies) with an especially strong quarter in Germany and Spain. In addition, SAP had strong double-digit software revenue growth in Germany, Russia and the Middle East & North Africa (MENA) region.

The Company is raising its outlook for the full year 2017: Based on the strong momentum in SAP's cloud business, the Company continues to expect full year 2017 non-IFRS cloud subscriptions and support revenue to be in a range of €3.8bn to €4.0bn at constant currencies (2016: €2.99bn).